Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of Applied Micro Circuits (NASDAQ:AMCC) jumped nearly 12% Tuesday following several positive analyst notes on the company.
So what: First, Canaccord's Matthew Ramsay initiated coverage on Applied Micro Circuits yesterday evening, giving the stock a buy rating and a $16 per share price target. Ramsay cited Applied Micro's first-to-market position with 64-bit ARM processors designed specifically for enterprise servers, which should result in particularly strong X-Gene chip sales over the near term as the competition strives to catch up.
In addition, Hans Mosesmann of Raymond James and Krishna Shankar of Roth Capital reiterated their respective strong buy and buy ratings for Applied Micro stock. Both analysts noted optimism surrounding the impending strength of Applied Micro's server offerings through its X-Gene efforts.
Now what: Applied Micro Circuits isn't profitable on a trailing 12-month basis, but shares look reasonably priced at about 18 times next fiscal year's estimated earnings -- especially considering that Applied Micro hopes to ride this momentum and double quarterly sales by the end of fiscal 2016. If that happens, it's safe to say patient investors would be happy they held on after today's pop.
Leaked: Apple's next smart device (warning, it may shock you)
But Applied Micro also isn't the only company poised for huge growth. In fact, Apple recently recruited a secret-development "dream team" to guarantee its newest smart device was kept hidden from the public for as long as possible. But the secret is out, and some early viewers are claiming its everyday impact could trump the iPod, iPhone, and the iPad. In fact, ABI Research predicts 485 million of this type of device will be sold per year. But one small company makes Apple's gadget possible. And its stock price has nearly unlimited room to run for early in-the-know investors. To be one of them, and see Apple's newest smart gizmo, just click here!
Steve Symington owns shares of Apple. The Motley Fool recommends Apple. The Motley Fool owns shares of Apple. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.